May. 23, 2013 - 03:45AM
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The name change reflects its ambitions of becoming a major force in consolidating the country’s fragmented defense market, according to a statement.

“Poland’s industry deserves to develop itself and to have an important global position,” the PHO said in a statement. “The Polish defense industry is consolidating. This is why the Polish Defense Holding was established.”

Krzysztof Krystowski, chief executive of the PHO, told local news agency PAP that the most important challenges are to introduce more innovation into its product portfolio and intensify cooperation with players in the domestic market and abroad. Krystowski also said that a merger with the country’s other major defense manufacturer, Huta Stalowa Wola, would be very beneficial for both entities.

“We would like to combine ... Polish business, capacities of Polish workers, the talents of Polish engineers and inventors and [their] experience in cooperating with key industry and business partners,” said Rafal Baniak, deputy minister of treasure.

To implement its growth strategy, the PHO aims to significantly increase its spending on research and development to some 337 million zloty (US $112.3 million) this year, up 42.7 percent from 236.2 million zloty a year earlier, according to figures released by the Polish group. Last year, the defense manufacturer’s R&D spending was the second-highest among all companies operating in Poland.

Poland’s Ministry of Treasure is the sole shareholder of the Polish Defense Holding. The ministry has said that it plans to launch the holding’s initial public offering on the Warsaw Stock Exchange in 2015.